December 19, 2024
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Gathering zero-party data through highly engaging experiences is essential in a digital world where information overload inundates consumers. That's why incentivized promotions, like giveaways and sweepstakes, can be so effective.
One of the key best practices for collecting zero-party data is being transparent with customers. According to a study by Forrester, 72% of consumers are more likely to engage with a brand that provides them with a clear explanation of how it will use their data.
Marketers should clearly explain what information is being collected, why it is necessary, and how they will use it. A clear privacy policy and an opt-out option for customers help ensure data security compliance and can go a long way in building trust.
For example, a mobile app that asks for permission to access device data, such as location and photos, should clearly explain why this data is needed to provide the best user experience, especially with giveaways.
Because your customers voluntarily share zero-party data under transparent compliance terms, it's incredibly valuable to build and enrich your audience lists. Promotions like giveaways and sweepstakes can help with data enrichment by providing additional customer insights, including preferences, interests, buying behavior, demographics, and intent or life events.
Consider putting a strategy in place to collect additional data points like birthday, gender, home ownership, household income, marital status, political preference, and travel preference. All of this information can be directly monetized as it helps you build more robust customer profiles to guide marketing and communication strategies.
Respecting customers' privacy is crucial in collecting zero-party data. In addition to the transparency of the data collection process and ensuring that the data is stored securely, you can prioritize data privacy and compliance by adhering to data protection laws, such as GDPR. GDPR stands for "General Data Protection Regulation," and is a European Union law that imposes strict rules on organizations worldwide when it comes to accessing and storing users' data — in addition to penalties and fines for violations.
Specifically, when it comes to a giveaway or sweepstakes, you should also take proactive steps to prevent any insider advantage. By implementing clear guidelines, employing software tools for winner selection, and establishing robust conflict of interest policies, you can ensure that employees, sponsors, or their immediate family members do not gain an unfair advantage. Other main giveaway requirements for sweepstakes include a "no purchase necessary" disclaimer along with clearly defined eligibility and age restrictions.
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Because customers appreciate tailored experiences, recommendations, and offers that align with their preferences and behaviors, segmentation is an integral part of a zero-party data strategy.
As you gain more zero-party data, you can begin segmenting your audiences based on demographic information, preferences, interests, and behaviors. This will help create highly personalized follow-up communications and future interactions, which help generate brand affinity and engagement from consumers. For example, Salem Media has used a data enrichment strategy to send newsletters to people in specific demographics. For example, a Medicare Moments newsletter is sent to people who are age 55+. This newsletter provides information on retirement and medicare, etc.
Equipped with zero-party data that meets all necessary data compliance terms, businesses can now activate this data — long after the sweepstakes winner has been announced. There are many ways to integrate zero-party data into a marketing strategy, including:
Start with a GDPR and CCPA compliant data capture and enrichment tool, like Audience. With Audience, you can run sweepstakes, contests, quizzes, polls, UGC campaigns, and more — and never have to worry about data security or compliance.
All data that is collected with Audience is also stored in the Audience database, where it can be easily segmented and activated through our secure integrations.
Many media companies use this tool to enhance their advertisers' campaigns and marketing goals while helping them strategically build their zero-party data. Learn more here.